Young workers ‘are conned’ over pensions

A SENIOR trade union official has claimed young workers have been “conned” by their employers to take defined contribution pension schemes as opposed to defined benefit schemes.

Eamon Devoy, leader of craft union the TEEU, told the Irish Congress of Trade Unions Delegate conference in Bundoran that the trade union movement must immediately launch a nationwide campaign to defend occupational pensions, but was particularly scathing of the increasing introduction by employers of the defined contribution schemes which put financial risk on the shoulders of the employee.

“Just over half of the 1.7 million employees in this state are fortunate enough to have some sort of occupational pension, but recent figures show that 12 times as many young workers are being forced into substandard defined contribution schemes, leaving the employer with little or no liability, as are able to join defined benefit schemes. “When you take into account the fact that most new recruits to defined benefit schemes are in the public sector, the discrepancy is even greater.”